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Non-Tech : Any info about Iomega (IOM)? -- Ignore unavailable to you. Want to Upgrade?

To: Spank who wrote (47528)	2/11/1998 4:53:00 PM
From: Gary Wisdom	Read Replies (2) \| Respond to of 58324

Syquest revenues $32MM, cost of revenues $40MM. That about says it all. I heard their management creed is "to make up for losses, we need to sell more at a loss" I feel sorry for any Syquest investors. This company had $12MM in cash on December 31. They'll be bankrupt very, very soon. Pathetic.

To: Spank who wrote (47528)	2/11/1998 4:55:00 PM
From: Michael Coley	Respond to of 58324

RE: SyQuest Reports $39MM Loss on $32MM of Sales. Ouch. Some clips from their press release, with my comments in [brackets]: The first-quarter loss reflected production start-up costs and increased advertising [SG&A almost doubled from Q4] to launch SyQuest's new 1-gigabyte SparQ product into the marketplace. Revenues and profits were also affected by competitive price cuts on the SyJet and EZFlyer 230 product lines [make it up in volume?], a shift in mix away from high-margin legacy products [oops?], a short-term yield loss on SyJet cartridges [can you say rejects?], and component shortages ["we'll ship it after you pay for it"] which constrained shipments of SyJet and SparQ products to meet current order backlog. ''First-quarter results were shaped by several adverse factors, from pricing pressures [thanks, Iomega!] to production delays [we feel your pain],'' said Ed Harper, SyQuest president and CEO. ''We also saw a successful product launch of our exciting new SparQ drive, as well as strengthened sales of the SyJet [hmmm couldn't be much, revenues up $9 million over Q4--SparQ was expected to increase revenues by $10 million from 50K drives / 90K disks sold in Q1]. ''We have made a management decision to focus resources on the opportunities created by SparQ, with a strategic transition to this product as the backbone of our corporate future,'' Harper said. [i.e. it doesn't matter that we lose more on SparQ, we just can't sell the others...] The company's financial condition as of December 31, 1997 included a cash position of $12.7 million, resulting from previously reported equity financing [i.e. dilution] - Michael Coley - wwol.com